Decathlon has signed a letter of intent to acquire a 50 percent stake in Sport 2000 France, owned by sports retail group Céraclès Coopérative, in a deal designed to strengthen its presence in French ski resorts, Reuters reported.
The companies said Sport 2000 stores would remain independently operated under their existing franchise model. The partnership would allow Decathlon to enter the ski rental market and make its products available through Sport 2000’s network in the French Alps and Pyrenees.
Jérémy Angelard, Decathlon’s Chief Business Officer for Europe, told Reuters the retailer is seeking to expand its footprint in services as well as products, describing services as a significant part of the sports market where the company wants to grow.
According to Reuters, mountain sports, including winter sports and hiking equipment, account for about 25 percent of Decathlon’s business in France. Decathlon operates five stores in mountain locations, compared with 190 for Sport 2000.
The deal would also give Decathlon access to other Céraclès retail chains, including Mondovélo, Espace Montagne, Ekosport-Rent, WAS We Are Select, S2 Sneakers Specialist and Urban Soccer. Céraclès operates 700 stores in France, including 400 under the Sport 2000 banner, while Decathlon has 325 stores in the country.
Financial terms were not disclosed. The transaction remains subject to regulatory approval.
